The Second Continental Congress

question 14

Multiple Choice

The Second Continental Congress

• A) established an army.
• B) signed a treaty with Great Britain that avoided armed conflict.
• C) signed a treaty with France to declare war with the colonies on Great Britain.
• D) created a unitary government in the United States.
• E) brought the remaining seven colonies into its organization.

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Definitions:

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Market Risk Premium

The extra return over the risk-free rate that investors require to hold a risky market portfolio.

Beta

A measure of a stock's volatility in relation to the overall market; often used as a gauge of an asset's risk.

Security Market Line

A line that represents the relationship between risk and expected return in financial markets.